OREANDA-NEWS. April 12, 2011. The SORAINEN Dispute Resolution Team in Latvia appeared before the Constitutional Court when the Court delivered its ruling in a case in which SORAINEN represented the Latvian Parliament and Cabinet of Ministers. SORAINEN won the case for the client. Oral pleadings are scheduled only in highly complex and controversial matters involving heightened public attention. The oral pleadings for this case took two days, reported the press-centre of SORAINEN.

SORAINEN was selected to represent the legislator in the case, initiated by members of the Latvian Parliament who challenged the constitutionality of provisions of the Credit Institutions Law. The provisions challenged were adopted in order to facilitate special measures in the banking sector aimed at transfer of bank assets. These were part of a legislative package aimed at implementing measures to stabilise the Latvian financial sector, which had suffered in the global financial crisis. On the basis of these provisions part of the assets of Parex banka, which was bailed out by the government in 2008, was transferred to the newly established banka Citadele, as part of the Parex restructuring plan.

The case was of paramount importance for the Latvian Government, which considered the measures crucial for the stability of the Latvian financial sector. The outcome of this case sets an important precedent and will influence other Parex-related litigation still in progress.

The case has caught wide public attention and carries great significance for the entire financial market. "The case was also significant because it was the first Constitutional Court case where SORAINEN Latvia participated in oral pleadings. The client is very happy and this is a remarkable victory for SORAINEN," commented partner Agris Repss on hearing of the decision.
The SORAINEN team was led by partner Agris Repss with full support from partner Rudolfs Engelis, specialist counsel Martins Paparinskis, senior associate Raivo Raudzeps and associate Valts Nerets. Specialist counsel Martins Paparinskis argued the case during the oral pleadings.